In 2017, asset servicers embraced the rally of global capital markets as well as the return of interest rates in the US. As a counter balance, they had to support increasingly stringent regulatory requirements, transform operating models, and continue to invest heavily in technology. Asset servicers also had to manage the trickle-down effect of intense competition within the asset management industry, where the success of a strategy, product, or fund is determined by a few basis points. None of this has come as a surprise to asset servicers and most have strategically adjusted their focus. However, each servicer interprets these challenges differently and creates offerings based on their understanding of market and client need. This creates significant opportunity for differentiation.
Asset servicing is now inextricably linked with technology and will have to adopt a more flexible, quick-to-market approach to resonate with the contemporary needs of asset managers. It remains imperative that asset servicers continue to build their key differentiators and evolve the ways in which they can service their clients, while utilizing new, innovative technologies.
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